Tuesday, 22 May 2007 / Log in
[ business ]
CEZ signs contract on energy project in Bosnia
By Prague Daily Monitor/ČTK / Published 17 May 2007

Prague/Gacko, Bosnia and Herzegovina, May 16 (CTK) - Czech power company CEZ today signed a contract with Republika Srpska in Bosnia and Herzegovina on setting up a joint venture for a project worth EUR1.4bn (Kc39bn), CEZ spokesman Ladislav Kriz told CTK.

The project includes the construction of the Gacko II coal-fired power plant, modernisation of the existing Gacko I power plant, and extension of the adjacent mine.

The new plant at Gacko, in the south-east of the country, will have a capacity of 600 to 700 MW, while the existing one has a capacity of 300 MW.

"The planned investment is yet another step in our effort to become the leader on the electricity market in central and south-eastern Europe. It will also be the biggest ever foreign investment by a Czech company, and the biggest foreign direct investment in Republika Srpska in Bosnia and Hercegovina so far," CEZ CEO and board of directors chairman Martin Roman said.

The project will be carried out by Nove Elektrarne RS (NERS), a joint venture to be set up by CEZ and Elektroprivreda RS (ERS).

CEZ will own 51 percent of NERS. ERS will invest Gacko I plant in NERS, and CEZ will raise NERS's share capital to EUR400m, said Roman.

CEZ is the biggest power producer in central Europe and the most profitable company in the Czech Republic.

It has already bought three distributors and a power plant in Bulgaria, and acquired a majority in Romanian distributor Electrica Oltenia. Last year, it bought two power plants in Poland.

This story is from the Czech News Agency (ČTK).
The Prague Daily Monitor and Monitor CE are not responsible for its content.
Nomos-Bank, Czech PPF to set up banking group in Russia [ BUDAPEST BUSINESS JOURNAL/RIAN.RU | 18 May ]
Group CEZ Q1 net profit up 25 pct to 12.98 bln Czech koruna [ FORBES/THOMSON FINANCIAL | 18 May ]
Iconic impressions [ PRAGUE POST | 18 May ]
One man, multiple stylish enterprises [ PRAGUE POST | 18 May ]
Luxury hotels on the rise in Golden City [ PRAGUE POST | 18 May ]
Logistics brings change to marketplace [ PRAGUE POST | 18 May ]
Ablon has the market's pulse [ PRAGUE POST | 18 May ]
CS to sell CEZ shares through intermediary [ Prague Daily Monitor/ČTK | 18 May ]
Chinese tourists discovering Prague [ Prague Daily Monitor/ČTK | 18 May ]
Multiservis Q1 hire-purchase deals down slightly at Kc2.21bn [ Prague Daily Monitor/ČTK | 18 May ]
Income from electronic toll tops Kc2bn [ Prague Daily Monitor/ČTK | 18 May ]
Eckes sells top Czech spirits maker Stock to Oaktree Capital [ Prague Daily Monitor/ČTK | 18 May ]
Czech building societies raise lending by 28 pct in Jan-April [ Prague Daily Monitor/ČTK | 18 May ]
Number of poultry in CzechRep down, cattle, sheep up in Q1 [ Prague Daily Monitor/ČTK | 18 May ]
CNB Board meeting ends, no policy decisions taken [ Prague Daily Monitor/ČTK | 18 May ]
Paperwork blocks access to EU money [ PRAGUE POST | 18 May ]
Digital tenders combat corruption [ PRAGUE POST | 18 May ]
Going gray [ PRAGUE POST | 18 May ]